When we read about the stock market, Jesse Livermore has some of the more memorable quotes. "It was never my thinking that made the big money for me. It was always my sitting."
Well, here we are fence sitting but I am positive that is not what he meant. The market is making small losses but no real sell off. Recently we made three-month lows but no real follow through. Crude is hovering at $50 whereas Gold is trading between $1250-$1270.
Earnings pops-and-drops seem particularly acute this time around. However, the big names like Microsoft, Alphabet, and Facebook are doing well and pushing to new all-time highs.
For the Commodities, there was no real strong directional change this week. Below is the West Texas Crude chart ($WTIC). It stayed above $50 for the second week in a row.
Gold fired up on Tuesday, only to retreat by Friday. It closed the week $10 higher. We do have a positive MACD crossover from a low level. We could see a rally from here as the gold miners briefly started to outperform the metal. It is something to watch.
I spent a good portion of the webinar renewing the Solar stocks. Here is an example of First Solar (FSLR). These stocks are tremendously volatile both directions. Note how well they respond when the SCTR has given them up for dead and then they start to re-emerge. For those that like to bottom fish, there may be an opportunity on some of the solar names.
The webinar lays out the broader perspective on more of the solar stocks. Here is the Commodities Countdown webinar recording from Thursday, October 20th.
Commodities Countdown LIVE! with Greg Schnell - 2016-10-20 17:00 from StockCharts.com on Vimeo.
Webinar // $CRB Commodities 0:00 // Energy 15:00 // Industrial Metals 20:00 // Precious Metals 24:00 // Ag 31:00 //Autos 37:00 // Foreign Indexes 38:00 // Solar Stocks 42:00 // Q&A 52:00//
You can click on this link to watch it in a new browser window. Commodities Countdown Webinar 2016-10-21.
Enjoy your weekend.
Good trading,
Greg Schnell, CMT, MFTA.
